With interest rates currently incredibly low and likely to be cut further, many people are rightly worried about where to put their savings. For many people, a regular ISA or current account no longer works, and people are looking at alternate options. Here, we take a look at options for where you can put your savings.
Savings
Current Account – Current accounts are still a great place to keep your monthly incoming and outgoings; especially as they’re free to open and use. However, interest rates are often negligible, meaning you’re not making much money. As a result, it’s wise to look elsewhere for your savings, portioning part of your income off to put elsewhere.
Savings Account – If you’d like to save extra money without any level of risk, then a savings account is the perfect vehicle for this. This is because they offer a better interest rate than in a current account. The only downside is that you cannot always access your money immediately. It’s your choice here. Some places offer flexible interest rates, while some building societies offer fixed rate accounts. Interest rates can rise as well as fall, so there’s an element of risk either way, as you may not necessarily be getting the best rate.
Help to Buy ISA – As you’d expect, Help to Buy ISAs are a great option if you’re looking to buy your first house. For every 200 you save, the Government contributes 50, adding an extra 25%. The maximum government bonus you can receive is 3,000 and you can save up to 200 per month. There’s more information available here.
Investing
Property – At the moment, the property market is red hot. Over the course of the past decade, the Buy to Let market has seen some people make an incredible amount of money. Houses are a very long term investment, but there is money to be made in property if you can buy low and sell high. Experts predict that prices aren’t going to fall any time soon, so property could be worth considering.
Furthermore, there are numerous innovative solutions you can explore to take advantage of the affordable housing crisis, especially in areas like Los Angeles (if that’s where you’re from) as an investor. For example, if you own an existing property, you could consider contacting a reputable ADU Builder to explore the possibility of constructing Accessory Dwelling Units (ADUs). This innovative approach not only adds value to your existing property but also addresses the pressing need for affordable housing.
Stocks and Shares – Finally, if you’ve got good financial and business knowledge, then trading stocks and shares could be perfect for you. There’s always a large risk involved in trading like this, but you can make short term gains relatively quickly. This is different to housing, where turning a profit can take years.
To conclude, there are a great number of places you can put your money, and this is just the tip of the iceberg. Scour the markets, do your research, and pick the one that’s best for you.